42629 lecture 8 - oroclean presentation

42629 - Innovation in Product Development

Tirsdag d. 20/3-2012

Lærke Holstebroe Jeanne Lønstrup

THE TEAM ORIGINAL PRESENTATION FROM VENTURE CUP FINAL BUSINESS PLAN HOW IT ALL STARTED… (MIT ELEVATOR PITCH) AND ENDED… 10 LEARNINGS AND QUESTIONS?


Agenda

DTU Management MSc. Stud.


The Team

Original Slides from Venture Cup Final


Venture Cup Presentation

Mercury in small scale mining

Lærke Holstebroe Jeanne Lønstrup Jakob Parslov Trine Duelund

OroClean – Change the world with a profitable business Low tech, proven technology Miner: 11% Cheaper than mercury 30% Higher value of gold 41% Income Refiner: 20% Income Locally Produced, for the expences of: DKK150 Eliminate 30% of the global mercury pollution



OROCLEAN REFINER MINER LEASE RENT

GREEN GOLD

NON REFINED GOLD

Product to market

Expand market

1. år 2. år 3. år

Break Even ~ 2. år


BUSINESS MODEL


15 – 20 milliones miners Start up expences: DKK 5 mio. Profit 1st year: DKK 3,5 mio.

OroClean – Doing good by doing well



The Business Plan…


Content - Business Plan


+ Appendices: • Patent feasibility • Letter of recommendation • Income Statement • Competitor Analysis • Mapping of Value Chain • Cash flow • Budget

Business model


Arguments to back up feasibility

• Geo Center

• Professor Kurt S Anderson


Implementation Strategy

Local Champion


Current Status


Projected Market Share / Competitor Analysis


Mapping of Value Chain and Cash Flow

Create value for all involved actors in the value chain


Leasing takes place: Rate $90/year*unit

Contract manufacturing takes place: Rate $43/unit

Renting takes place: Rate $10/week*unit $520/year*unit

Income Statement for OroClean


Cash flow for OroClean


Problem

How it all started…


Rensselaer Polytechnic Institute Troy, New York


USA – Exchange Program

”Think big. You can do it!” – Burt Swersey


Inventor’s Studio

Problem Methods used


Basic Engineering skills – Learn by doing • Internet research • Bottom-of-the-pyramid theory • Brainstorms, morphology, concept creating • Actor-network • Testing & Prototyping • Calculation of mechanical / fluid dynamic principals • Roll-the-snow-ball / networking • Pitching / watch other people pitch • Participate in workshops / events, ‘in the field’ • Workshops with experts

An iterative approach

Problem The Problem

• Find a problem that affects millions of people • Understand the context of the problem • “Need to have, not nice to have” • A treat is the most powerful motivation factor


What’s in it for me?

I want to be able to eat my tuna fish every day!


Problem Tell a touching story


Inspiration


Bottom-of-the-Pyramid (BOP): 2.5 billion people who live on less than $2.50 per day

http://www.youtube.com/watch?feature=playerembedded&v=ezVxt7TkyeM

IDE – Treadle Pump: Inspiration from Franchise business model

Paul Polak - TEDx: Founder of non-profit International Development Enterprises (IDE)

Search for Possibilities


Do you really need a patent? Other ways to protect your product?

Problem Proof of Concept


Initial simple tests

Semifinal: 10 selected, 120 entries

Spread the word – Get feedback


Semi finals: http://www.youtube.com/watch?v=BspJKEMpoUQ&feature=related

First Round: http://www.youtube.com/watch?v=viamkBLPUBw&feature=related

MIT Elevatior Pitch Competition


http://www.youtube.com/watch?v=BspJKEMpoUQ&feature=related�

http://www.youtube.com/watch?v=viamkBLPUBw&feature=related�



Develop New Competencies Through Events


Workshop with GeoCenter


Problem Understand the context


Goldshops The Refiner The Miner

Gold Gold

$ $

Fundraising

Skype presentation from Denmark

Semifinals: 60 selected, 700 entries

Winner of Cleantech Overall winner of Startup Competition

Winner of Develop Prize, Social Entrepreneurship

Presentation of project to Minister of Climate and Energy, Lykke Friis

FUNDS

Augustinus Det Obelske Familiefond Direktør Neergaards Fond Familien Hede Nielsen Fond Spar Nord Fond

No money


Venture Cup 2010

• Announcement of the final 15 teams, 5 categories

• Online Feedback on Business Plan (Excel Sheet)

• Venture Cup Pitch Training Day

• Jury Panel Pitch – Copenhagen City Hall (2nd of June) • 4 min pitch • 8 min Q&A • 10 min feedback

• Venture Cup Final – Live pitch for audience – Copenhagen City Hall (3rd of June)

• Winner of Cleantech category 50,000kr + final 200,000kr Party + Champaign + Happiness


Innovation Environments

Accounting Advices

Student Incubator; Office space & business development sparring

After the Venture Cup Final


Prototyping

Board of advisers

Problem

…. And ended


What went wrong?


• Lack of motivation & courage

• A lot of tax

• Not willing to share ownership with Venture Capitalists

• Overlapping competencies in team

• Prioritized university before business

• Spent a lot of time on emails, university rights, practical stuff

• Complexity of market

10 learnings

#1: ”Just do it!” – mentality #2: Share your idea with other people #3: Work with something that interests you! #4: The right team is very essential #5: Take risks #6: Network - will open many doors #7: Talk to the user/experts and understand the context #8: Be curious and keep learning #9: Kill your darling & try again #10: Have fun


Inspiration – The mushroom man Eben Beyer

http://www.youtube.com/watch?v=Di-cvmSAQEQ


http://www.youtube.com/watch?v=Di-cvmSAQEQ�

Video from Dell Social Innovation Competition

http://www.youtube.com/watch?v=LebCeHnr8R4


http://www.youtube.com/watch?v=LebCeHnr8R4�

http://www.youtube.com/watch?v=LebCeHnr8R4�


”Its easier to teach a scientist business than to teach a business man science” ”Scientists are the best entrepreneurs” – Sharron Ballard

Question?


Picture - Trevor Snapp/ Bloomberg http://www.bloomberg.com/news/2010-12-23/shooting-gold-diggers-at-african-mine-seen-amid-record-prices.html Picture - IW Science http://projects.csg.uwaterloo.ca/inweh/display.php?ID=2451 Picture - BOP http://upload.wikimedia.org/wikipedia/commons/thumb/a/a7/Anti-capitalism_color.jpg/300px-Anti-capitalism_color.jpg IDE http://www.paulpolak.com/html/media_photo.html

References

http://projects.csg.uwaterloo.ca/inweh/display.php?ID=2451�

http://upload.wikimedia.org/wikipedia/commons/thumb/a/a7/Anti-capitalism_color.jpg/300px-Anti-capitalism_color.jpg�

http://upload.wikimedia.org/wikipedia/commons/thumb/a/a7/Anti-capitalism_color.jpg/300px-Anti-capitalism_color.jpg�

Education

42629 lecture 8 - oroclean presentation